Advantage Brand Enterprises: Clothing Retail Prices Have Been Upgraded

Since the beginning of this year, due to the price of raw materials such as cotton and the increasing cost of labor, the prediction of clothing price has been widely circulated.

advantage

With the cost of raw materials and employees' wages in the sound of "rising", it is a large and medium-sized enterprise with brand strength in the garment industry.

For the dominant brands, the promotion of prices will not have a big impact on sales, because this group of consumers is mainly Buying grades and buying feelings, and will not be too sensitive to price increases.

Export oriented enterprises: price increases but profits decrease.

In the first half of the year, China was quite popular.

However, most export garment enterprises say that their export quotes are affected by factors such as raw materials and labor costs, and prices are indeed increased. However, the profits of products are decreasing.

Domestic small and medium enterprises: compressing profit margins can not easily raise prices.

For those small and medium sized processing enterprises whose brand is not well-known, especially those with no brand effect, their prices will not rise.

Most of the SMEs clearly stated: "we will not raise the price, the price is almost the same as last year".

This phenomenon is more obvious in the wholesale clothing market. A large number of clothes without brand and small brand clothing can only compress their profit margins, and can not see signs of price rise at all.

"Manufacturers are forced to raise their prices under pressure of cost, but we, as wholesalers, are afraid that raising prices will scare retailers and customers. There is no way to reduce costs."

A clothing wholesaler said, "brand agents are different from us. Their profits are higher and the cost impact is not so great.

Moreover, they have advantages over us and the cost of pferring them is easier. "

People in the industry say that clothing companies can choose more simple processes in production, produce simpler designs, and use cheaper raw materials to digest costs.

However, the ability of each enterprise to digest costs is high and low. Some smaller businesses are less capable. Businesses should respond to this change according to their own conditions.